At the start of his speech in London, Mr Modi said: “I would like to ensure you that the dreams you have dreamt – and the dreams every Indian has dreamt – India is capable of fulfilling these dreams. There is no reason for India to remain a poor country.”

Image copyrightGetty ImagesImage captionThe crowd saw a variety of dancing and signing performances before the speeches were made

His three-day visit is the first to the UK by an Indian PM in a decade.

The Indian prime minister’s visit to the UK is seen as highly significant, coming three weeks after Chinese leader Xi Jinping also visited.

Mr Modi has previously described India’s relationship with the UK as being of “immense importance”, but his appearances have also attracted protest over allegations of religious persecution and a reduction in civil liberties since he came to power.

A small group of protesters gathered outside Wembley ahead of the speeches BBC News confirmed.

After his lunch with the Queen, Mr Modi was shown a collection of items from the palace’s stores including a shawl given to the Queen by Mahatma Gandhi in 1947 as a wedding present.

In an exchange of gifts, Mr Modi gave the Queen photographs of her visit to India in 1961 and a gift box including Darjeeling tea from West Bengal and silk Tanchoi scarves from his parliamentary constituency of Varanasi.

In return, Mr Modi was presented with a silver dish and signed photos.

Earlier, the Duke and Duchess of Cambridge announced they would go on tour of India next spring.

Before being received at Buckingham Palace, Mr Modi took part in a round table of British and Indian business leaders in Downing Street.

The two countries have sealed £9bn worth of commercial deals in the retail, logistics, energy, finance, IT, education and health sectors, which No 10 said had created or safeguarded 1,900 jobs.

Image copyrightAFPImage captionThe visit has not been universally welcomed, with critics calling for attention to be given to Mr Modi’s human rights record

On Thursday, in the first speech by a serving Indian PM to Parliament, Mr Modi said the UK and India were “two strong economies and two innovative societies” but he said their relationship “must set higher ambitions”.

The first day of Mr Modi’s visit also attracted protests outside Downing Street directed against a number of issues including claims of religious persecution, and interference in Nepal

Amnesty International has urged Mr Cameron to intervene over a “fevered crackdown on critics under way in India”.